The adviser group requires that its 30 AFAs around the country operate in a fee-only capacity.

They deal with fund managers Dimensional, Smartshares, Harbour, AMP and iShares.

Brinkerhoff said not accepting commissions or other incentives was a key part of NZ Wealth’s values. The wider industry should follow suit, to offer clients better outcomes, he said.

“People may or may not express that conflict of interest and some can handle it but it still exists.”

Advisers who were paid a fee by a client would represent the client’s interests to the industry, rather than representing the industry to the client.

More than half the country’s AFAs are tied up with banks or other controlled distribution networks, Brinkerhoff said. Those who were independent needed to be truly independent by removing the commission tie.

There have been suggestions that New Zealanders are not financially savvy enough to pay for advice but Brinkerhoff said that was not a good argument because it indicated that people did not understand how their advisers were paid.

“It’s the adviser’s job to explain their value proposition so the person can make an informed choice… doctors, lawyers and accountants are all on the same side of the table as their clients. Everyone has a fiduciary obligation to serve their clients’ best interests. We will never be a profession until we can say the same.”

The Government should legislate against commission, Brinkerhoff said.

“We’d be happy to find another point of difference.”

NZ Wealth’s advisers charge a range of fees, from 50 basis points to more than 1%. “Not all are doing the same service.”

The portfolio cost for 50% equities and 50% fixed interest was 32 basis points, he said. “This is the future, either embrace it or get left behind. It’s happening in the US, UK and Australia. New Zealand desperately needs to have this transparency.”